The Reserve Bank of India has imposed several restrictions on a co-operative bank, including withdrawal. That is, if you have an account in this bank, then you will not be able to withdraw money. Also, some banking facilities will also not be able to take advantage of. The RBI has taken this decision on Friday in view of the deteriorating financial condition of the lender bank.
However, 99.84 per cent of the depositors of this co-operative bank are fully covered under the DICGC insurance scheme. Under the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance scheme, deposits up to Rs 5 lakh are insured. RBI said in a statement that the restrictions will remain in force for a period of six months from the close of business on May 13, 2022 and will be reviewed.
Withdrawal of any kind is not allowed
RBI said in the statement that taking into account the current liquidity position of the bank, withdrawal of any amount from the total balance in all savings bank or current accounts or any other account of the depositor may not be permitted, but subject to conditions. Accordingly, recovery from borrowal liability is allowed. It further said that the issuance of the directions should not be construed as cancellation of banking license by RBI.
business will continue
The RBI also said that the bank will continue to carry on banking business with the restrictions specified in the directions till its financial position improves.
Ban on this bank
Explain that the Reserve Bank of India has imposed restrictions on Shankarrao Pujari Nutan Nagri Sahakari Bank Limited, Ichalkaranji, Kolhapur. RBI says that without its permission, the bank cannot give loans, grants to anyone and add new customers. Apart from this, you cannot make any kind of investment. It cannot dispose of any of its assets or assets, among other restrictions.